Goods and Services Tax:Understand CGST, SGST and IGST

Goods and Services tax is an indirect tax levied on goods and services in whole nation. There are three types of GST: CGST (Central Goods and Services Tax), SGST (state goods and services tax) and IGST (integrated goods and services tax). Before GST there were different taxes like VAT, Central excise, Service Tax were being levied by the government on consumers which abolished after GST and makes India “one nation one tax”. There are different GST rates for every products and services levied by the Government.

Details of GST rates on different products: GST RATE SLAB

What is CGST (Central goods and services tax)?

CGST which is also known as central goods and services tax levied by the Central Government on any transaction of goods and services. If there is intrastate supply of goods and service then the seller has to collect both CGST and SGST. The CGST will be collected by the central government and SGST will be collected by the state government.

What is SGST (State goods and services tax)?

SGST refers to state goods and services tax is governed by the SGST act and levied by the state where the transaction of products and services are being purchased or sold. The tax collected from intrastate transaction of goods and services in state will be added to the state government revenue.

What is IGST (Integrated goods and services tax)?

IGST also refers to Integrated goods and services tax is a tax charged on all interstate transactions of goods and services. Integrated goods and services tax is governed by IGST act and applicable to all interstate transaction which mean transactions of goods and services within two different states. Under IGST, exports would be zero-rated and tax will be shared between the central state government.

There are many advantages of GST including transparency and less complicated tax structures which aimed at simplifying the tax reforms and make India a business-friendly nation.

Due to many new concepts in goods and services tax you may have many questions related to GST.  For any assistance related to GST:  Check out GST Query support

Latest updates on GST rate and GST filing

The GST council has slashed the GST rates of 178 items of daily use from tax bracket of 28% to 18% which will come in to effect by November 15^th.Good and Services Tax council took a major step to simplify the process of GST returns filing during the meeting held last week. Now only 50 items left in the highest GST rate slab. The recommendations made by the GST council will reduce the compliance burden on businesses and ease the GST returns filing procedure for companies.

The item includes liquid soaps, chocolates, granite, detergents, perfumes, creams, wash basins, plywood, artificial flowers, panels, boards, tiles, ceramic pipes, glass mirrors, doors, fire extinguishers, compound optical microscopes, wrist-watches, razors and after-shave products which is a welcome step to benefit the consumers. There is no change in GST tax rates on consumer durables. These changes in GST rates of daily use items will increase the consumptions, affordability and consumer sentiment according to the industry experts.

In order to know more about the GST rates of other items included in 5%, 12% and 18% click here: https://www.trutax.in/gst-rate-slab

Changes in GST forms:

The GST council has decided to simplify the GST returns filing process for both small businesses and large enterprises. Before these changes the taxpayers had to file GSTR-1, GSTR-2 and GSTR-3 by 10^th ,5^th and 20^th of the subsequent month respectively.

There are two cases for GST returns filing depends on turnover of businesses.

Businesses with turnover of up to Rs. 1.5 crore a year:

-The last date to file GSTR-1 form for July to September is December 31.

-The last date to file GSTR-1 form for October to December is February 15, 2018.

-The last date to file GSTR-1 form for January to March by April 30, 2018.

Companies with turnover of 1.5 crore or more a year:

-The last date to file GSTR-1 form for July to October is December 31.

-They have to file monthly returns but with a delay of 40 days from the end of the taxable period.

Know more about the details of other GSTR forms and its deadline dates:  https://www.trutax.in/gst-returns-filing

Penalty for last filing of GST returns:

The GST council has also revised the penalty charges for late GST return filing to reduce the compliance burden on small and large businesses. The penalty for late filing of GST return has been cut to 20 per day from 200 per day for small business with a turnover of up to Rs. 1.5 crore and 50 per day for companies with the turnover of Rs. 1.5 crore or more.

It is very important to file the GST returns on time without any errors.

For any expert assistance related to GST returns filing process or query, click here: https://www.trutax.in/askexpert